TKO Group (NYSE:TKO) Sets New 1-Year Low - Here's What Happened

Key Points

• TKO Group shares hit a new 52-week low of $171.19 before recovering modestly, trading around $177.37. The stock remains below its 50-day and 200-day moving averages.
• Despite the decline, analysts maintain a “Moderate Buy” consensus, with 10 Buy ratings and 6 Holds and an average price target of $237.50.
• TKO’s latest quarterly revenue rose 18.2% year over year to $1.55 billion, but earnings per share of $1.34 missed estimates. The company also paid a quarterly dividend of $0.79 per share, representing a 1.8% yield.

Shares of TKO Group Holdings, Inc. (NYSE:TKO - Get Free Report) reached a new 52-week low during trading on Tuesday. The stock traded as low as $171.19 and last traded at $177.3680, with a volume of 1423363 shares trading hands. The stock had previously closed at $175.58.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on TKO shares. BTIG Research restated a "buy" rating and set a $237.00 price objective on shares of TKO Group in a research note on Tuesday, August 4th. Morgan Stanley lifted their target price on TKO Group from $225.00 to $230.00 and gave the company an "overweight" rating in a research report on Tuesday, August 4th. Guggenheim upped their price objective on shares of TKO Group from $230.00 to $235.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. Benchmark reiterated a "hold" rating on shares of TKO Group in a research report on Tuesday, August 4th. Finally, JPMorgan Chase & Co. cut their price target on shares of TKO Group from $225.00 to $222.00 and set an "overweight" rating on the stock in a report on Tuesday, July 21st. Ten research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat.com, TKO Group presently has an average rating of "Moderate Buy" and a consensus price target of $237.50.

TKO Group Trading Up 1.0%

The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 0.58. The firm's 50-day moving average is $188.23 and its 200-day moving average is $191.76. The firm has a market cap of $33.57 billion, a price-to-earnings ratio of 62.23 and a beta of 0.67.

TKO Group (NYSE:TKO - Get Free Report) last posted its earnings results on Monday, August 3rd. The company reported $1.34 earnings per share for the quarter, missing analysts' consensus estimates of $1.41 by ($0.07). The business had revenue of $1.55 billion during the quarter, compared to analyst estimates of $1.54 billion. TKO Group had a return on equity of 2.67% and a net margin of 4.33%.The company's revenue was up 18.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.17 EPS. As a group, sell-side analysts anticipate that TKO Group Holdings, Inc. will post 5.18 EPS for the current fiscal year.

TKO Group Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were paid a dividend of $0.79 per share. The ex-dividend date was Tuesday, September 15th. This represents a $3.16 annualized dividend and a yield of 1.8%. TKO Group's dividend payout ratio (DPR) is 110.88%.

Insider Activity

In related news, insider Mark Shapiro sold 19,120 shares of the business's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $194.39, for a total transaction of $3,716,736.80. Following the transaction, the insider directly owned 147,071 shares in the company, valued at approximately $28,589,131.69. The trade was a 11.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Andrew Schleimer sold 9,942 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $194.39, for a total transaction of $1,932,625.38. Following the completion of the sale, the chief financial officer owned 38,051 shares of the company's stock, valued at approximately $7,396,733.89. This trade represents a 20.72% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 120,404 shares of company stock valued at $23,073,938 over the last ninety days. Company insiders own 64.30% of the company's stock.

Institutional Trading of TKO Group

Institutional investors and hedge funds have recently modified their holdings of the business. NFJ Investment Group LLC purchased a new stake in TKO Group during the fourth quarter worth about $3,969,000. Hsbc Holdings PLC boosted its stake in TKO Group by 38.1% in the fourth quarter. Hsbc Holdings PLC now owns 105,333 shares of the company's stock valued at $22,115,000 after acquiring an additional 29,076 shares during the last quarter. Public Employees Retirement System of Ohio purchased a new position in TKO Group in the second quarter valued at about $9,698,000. Generate Investment Management Ltd bought a new position in shares of TKO Group during the 1st quarter valued at approximately $6,285,000. Finally, Blue Jean Financial LLC purchased a new stake in shares of TKO Group during the 4th quarter worth approximately $1,862,000. 89.79% of the stock is owned by hedge funds and other institutional investors.

TKO Group Company Profile

TKO Group Holdings, Inc is a sports and entertainment company that owns and operates Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE). The company was formed in 2023 through the combination of UFC and WWE under Endeavor Group Holdings, creating a platform focused on live sports and entertainment properties.

UFC organizes and promotes mixed martial arts events, distributes related media content, and manages sponsorship, licensing, and consumer products. WWE produces professional wrestling programming and live events, including its flagship brands and premium events, while also generating revenue through media rights, sponsorships, licensing, merchandise, and digital content.

TKO serves audiences and commercial partners internationally through televised and streaming programming, live events, and licensed products.

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